Universal Forest Products

Universal Forest Products Posts Record First Quarter Results

GRAND RAPIDS, Mich., Apr 15, 2002 /PRNewswire-FirstCall via COMTEX/ -- Universal Forest Products (NASDAQ: UFPI) today announced record results for the first quarter of 2002, including net sales for the quarter of $341.7 million, a 20.3% increase over net sales of $284.1 million reported in the same quarter last year. Diluted earnings per share for the quarter totaled $0.32.

At the beginning of 2002, the Company adopted a new accounting standard, which discontinued the amortization of goodwill. Under the new standard, pro forma diluted earnings per share for the first quarter of 2001 would have been $0.28 compared to the reported amount of $0.25.

"Our performance this quarter is a result of the exceptional execution by the people of Universal," said William G. Currie, UFP's chief executive officer. "We were also aided by a combination of factors, including a relatively mild winter, a favorable lumber market, a redemption of our shares, and sound acquisitions we completed in 2001."

By market, Universal posted first quarter sales of:

* $147.2 million in D-I-Y/retail, up 15.3% over last year;
* $68.5 million in site-built construction, an increase of 10.9% over last year;
* $67.2 million in manufactured housing, a 35.8% increase over last year; and * $58.7 million in industrial/agricultural, up 30.1% over last year.

The Company continues to target annual sales growth of 6% to 10% and diluted earnings per share growth of 18% to 22%, which includes the effect of discontinuing goodwill amortization in 2002.

Universal Forest Products will conduct a conference call to discuss information included in this news release and related matters at 11:00 a.m. EDT on Tuesday, April 16, 2002. The conference call will be hosted by William G. Currie and will be available for analysts and institutional investors domestically at 800-521-5414 or internationally at 303-224-6997. Use conference call ID #1439502. The conference call will be available simultaneously, and in its entirety, to all interested investors and news media through a web cast at www.ufpi.com .

Universal Forest Products markets, manufactures, and engineers products for D-I-Y retail home centers, structural lumber products for the manufactured housing industry, engineered wood components for the site-built construction market and specialty wood packaging for various industries. For information about Universal Forest Products on the Internet, please contact the Company's web site at www.ufpi.com , or call 888-BUY-UFPI.

Included in this report are certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are based on the beliefs of the Company's management as well as on assumptions made by and information currently available to the Company at the time such statements were made. Actual results could differ materially from those included in such forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainty. Among the factors that could cause actual results to differ materially are the following: Adverse lumber market trends, competitive activity, negative economic trends, government regulations, and weather. These risk factors and additional information are included in the company's reports on Form 10K and 10Q on file with the Securities and Exchange Commission.

Financial highlights to follow

Consolidated Statements of Earnings (unaudited)
For the Three Months Ended
March 2002/2001

(In thousands,
except per share data)		 Quarter Period
  2002 2001
Net Sales
$341,656
 100%
$284,069
 100%
Cost of Goods Sold
290,379
 84.99
240,950
 84.82
Gross Profit
51,277
 15.01
43,119
 15.18
Selling, General and Administrative Expenses
37,798
 11.06
32,273
 11.36
Earnings From Operations
13,479
 3.95
10,846
 3.82
Interest Expense
2,908
 0.85
3,199
 1.13
Interest Revenue
(113)
 -0.03
(72)
 -0.03
 
2,795
 0.82
3,127
 1.10
Earnings Before Income Taxes, Minority Interest and Equity in Earnings (Loss) of Investee
10,684
 3.13
7,719
 2.72
Income Taxes
3,973
 1.16
2,856
 1.01
Earnings Before Minority Interest and Equity in Earnings of Investee
6,711
 1.96
4,863
 1.71
Minority Interest
(629)
 -0.18
(67)
 -0.02
Equity in Earnings of Investee
-
 0.00
181
 0.06
Reported Net Earnings
$6,082
 1.78
$4,977
 1.75
Add: Goodwill Amortization,
net of tax
 
695
 0.24
Adjusted Net Earnings
$6,082
 1.78
$5,672
 2.00
Reported Earnings
per Share-Basic
$0.33
  
$0.25
  
Add: Goodwill Amortization,
net of tax
 
0.04
  
Adjusted Earnings
per Share-Basic
$0.33
  
$0.29
  
Reported Earnings
per Share-Diluted
$0.32
  
$0.25
  
Add: Goodwill Amortization,
net of tax
 
0.03
  
Adjusted Earnings
per Share-Diluted
$0.32
  
$0.28
  
Weighted Average Shares Outstanding
18,210
  
19,714
  
Weighted Average Shares Outstanding with Common Stock Equivalents
19,024
  
20,243
  

Consolidated Statements of Earnings (unaudited)
For the Three Months Ended
March 2002/2001

(In thousands,
except per share data)		 Year to Date
  2002 2001
Net Sales
$341,656
 100%
$284,069
 100%
Cost of Goods Sold
290,379
 84.99
240,950
 84.82
Gross Profit
51,277
 15.01
43,119
 15.18
Selling, General and Administrative Expenses
37,798
 11.06
32,273
 11.36
Earnings From Operations
13,479
 3.95
10,846
 3.82
Interest Expense
2,908
 0.85
3,199
 1.13
Interest Revenue
(113)
 -0.03
(72)
 -0.03
 
2,795
 0.82
3,127
 1.10
Earnings Before Income Taxes, Minority Interest and Equity in Earnings (Loss) of Investee
10,684
 3.13
7,719
 2.72
Income Taxes
3,973
 1.16
2,856
 1.01
Earnings Before Minority Interest and Equity in Earnings of Investee
6,711
 1.96
4,863
 1.71
Minority Interest
(629)
 -0.18
(67)
 -0.02
Equity in Earnings of Investee
-
 0.00
181
 0.06
Reported Net Earnings
$6,082
 1.78
$4,977
 1.75
Add: Goodwill Amortization,
net of tax
 
695
 0.24
Adjusted Net Earnings
$6,082
 1.78
$5,672
 2.00
Reported Earnings per Share-Basic
$0.33
  
$0.25
  
Add: Goodwill Amortization,
net of tax
 
0.04
  
Adjusted Earnings per Share-Basic
$0.33
  
$0.29
  
Reported Earnings per Share-Diluted
$0.32
  
$0.25
  
Add: Goodwill Amortization,
net of tax
 
0.03
  
Adjusted Earnings per Share-Diluted
$0.32
  
$0.28
  
Weighted Average Shares Outstanding
18,210
  
19,714
  
Weighted Average Shares Outstanding with Common Stock Equivalents
19,024
  
20,243
  

Supplemental Sales Data

  Quarter Period
Market Classification 2002 2001
Do-It-Yourself
$147,224
 43%
$127,674
 45%
Site-Built Construction
68,485
 20%
61,736
 22%
Manufactured Housing
67,200
 20%
49,489
 17%
Industrial and Other
58,747
 17%
45,170
 16%
Total
$341,656
 100%
$284,069
 100%
  Year to Date
Market Classification 2002 2001
Do-It-Yourself
$147,224
 43%
$127,674
 45%
Site-Built Construction
68,485
 20%
61,736
 22%
Manufactured Housing
67,200
 20%
49,489
 17%
Industrial and Other
58,747
 17%
45,170
 16%
Total
$341,656
 100%
$284,069
 100%

Consolidated Balance Sheets (unaudited)
March 2002/2001

(in thousands)
Assets Liabilities and Shareholders' Equity
2002 2001   2002 2001
Current Assets     Current Liabilities    
Cash and cash equivalents
$12,503
 $5,273 Notes payable
$2,025
 $795
Restricted cash equivalents
-
 1,281 Accounts payable and accrued liabilities
111,567
 89,798
Accounts receivable
135,218
 105,338 Current portion of long-term debt and capital leases
20,512
 18,260
Inventories
167,661
 148,187  
 
Other current assets
3,472
 8,852  
 
Total Current Assets
318,854
 268,931 Total Current Liabilities
134,104
 108,853
Other Assets
6,548
 11,758 Long-Term Debt and Capital Leases, less current portion
240,174
 197,336
Goodwill and Non-Compete
123,523
 113,671 Other Liabilities
24,962
 18,458
Property, Plant and Equipment, Net
187,531
 170,752 Shareholders' Equity
237,216
 240,465
Total Assets
$636,456
 $565,112 Total Liabilities and Shareholders' Equity
$636,456
 $565,112

Consolidated Statements of Cash Flows (unaudited)
For the Three Months Ended
March 2002/2001

(In thousands) 2002 2001
Cash Flows From Operating Activities:    
Net earnings $6,082 $4,977
Adjustments to reconcile net earnings to net cash from operating activities:    
Depreciation 5,611 4,577
Amortization of non-compete agreements and goodwill 301 1,045
Loss on sale or impairment of property, plant and equipment 66 -
Changes in:    
Accounts receivable (46,490) (37,032)
Inventories (44,856) (23,587)
Accounts payable 22,111 22,600
Accrued liabilities and other 915 (7,198)
Net Cash From Operating Activities (56,260) (34,618)
     
Cash Flows From Investing Activities:    
Purchases of property, plant and equipment (5,255) (7,781)
Aquisitions, net of cash received (359) (10,498)
Proceeds from sale of property, plant and equipment 161 481
Other 1,222 (391)
Net Cash From Investing Activities (4,231) (18,189)
     
Cash Flows From Financing Activities:    
Net borrowings under revolving credit facilities and notes payable 86,453 58,759
Repayment of long-term debt (158) (2,864)
Proceeds from issuance of common stock 62 48
Distributions to minority shareholder (250) -
Repurchase of common stock (36,000) (255)
Net Cash From Financing Activities 50,107 55,688
Net Change in Cash and Cash Equivalents (10,384) 2,881
Cash and Cash Equivalents, Beginning of Period 22,887 2,392
Cash and Cash Equivalents, End of Period $12,503 $5,273

Contact

At the Company: Michael R. Cole, Chief Financial Officer of Universal Forest Products, +1-616-364-6161
At Fleishman Hillard: Jim Ankner, Vice President of Fleishman Hillard, +1-212-453-2198